Caravan tax to cost 7,000 jobs: East Yorkshire MPs to step up fight
MINISTERS have been warned a decision to impose VAT on static caravans could lead to more than 7,000 job losses.
New figures estimate 4,340 jobs could be cut at holiday parks across the country, on top of the 3,000 jobs at risk at caravan manufacturers and in the supply chain.
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WORRYING TIME: Imposing VAT on sales of static caravans could have a drastic effect on the fortunes of the region's manufacturers. Picture: Peter Harbour
East Yorkshire, where 95 per cent of caravan manufacturers are based, is expected to bear the brunt of the job cuts.
MPs fighting to stop the tax being imposed now plan to use the new figures to urge the Government to reverse its decision.
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Beverley and Holderness MP Graham Stuart will use a Commons debate on Thursday to warn ministers of the potentially devastating impact on the economy.
Mr Stuart said: "These figures bear out what everyone in East Yorkshire has been saying.
"The VAT increase will be an own goal and not a boost to the nation's finances. The new figures do help our argument that this tax should not go ahead.
"It is another reason to believe the impact of this will be worse than the Treasury has expected."
The National Caravan Council, which released the figures, said it previously underestimated the impact of the tax on the holiday park industry.
The council said it now believes 4,340 jobs could be lost at holiday parks across the country.
Further job cuts could include 1,446 at caravan manufacturers, 1,500 at suppliers and 80 at distributors.
David Richie, whose firm Teamwork Professionals acts as the secretariat for the Hull and East Yorkshire Caravan Manufacturers' Association, said the tax will have a huge impact on the region.
"It will have a severe effect in this area, which is the biggest manufacturing centre for holiday caravans in the UK," he said.
"The tax will have such an effect on unemployment that it will not increase Government revenue because of the loss in income tax and increase in unemployment benefits.
"It seems ludicrous to introduce a measure that will not bring in any money but that will have an awful impact on a lot of people from a part of the country which is not that prosperous."
The debate will come just a week after MPs forced through a vote supporting the tax, despite a promise to extend the consultation period by two weeks.
The consultation on the change will now end on Friday, May 18.
Mr Stuart said: "These latest figures, which suggest a big hit on employment, are exactly why pressing the Government for an extension to the consultation was so important.
"The industry needed time to analyse the information and come up with accurate numbers, which show an even bigger effect on employment.
"Holiday parks employ a lot of young people and there is already a record level of youth unemployment.
"The people who may lose their jobs in this region, at both holiday parks and in manufacturing, will find it harder to get work because of the existing high unemployment."
According to the Government's estimates, the introduction of VAT will lead to a 15 per cent retail price hike and could reduce demand by 30 per cent.
But Hull West and Hessle MP Alan Johnson claims the real figure will be more like 75 or 80 per cent.
He said Atlas Leisure Homes, which cut 250 jobs during the recession in 2008, and Meadley International Transport will both be badly affected by the tax change.
He said: "Atlas has fought its way back and now employs 120 people in an area that has been badly hit by unemployment. Companies in the supply chain have had similar experiences Meadley International Transport is run by a father, his son and his daughter.
"He put in the whole of his pension and all his assets to get Meadley through the global downturn, and it, too, is now getting its head back above water.
"This measure will destroy Atlas and Meadley. It will destroy small businesses across the country.
"It will destroy an industry that is almost the last purely British success story in the manufacturing sector."
More than 1,500 people have signed an e-petition calling on the Government to scrap the tax, which was announced by Chancellor George Osborne in last month's Budget.
Last week, Ron Austin, joint managing director at Carnaby Caravans in Bridlington, said he could be forced to lose 33 members of staff if there was a 30 per cent drop in demand.
Comments
by smartguy1
Monday, April 23 2012, 10:57PM
“Jack_Russell2 - No offence but I am glad I am not related to you. I know what it feels like to be made redundant, 3 times in the last 10 years with the last being because the company was concerned about planned cuts by the tories just after they came to power in 2010.
I don't like Cameron, Osbourne or Clegg but I didn't like Gordon Brown either. Labour made a big mistake by going to the public with Brown in charge. After all, we didn't vote for Brown did we. We voted for Blair and that was why labour lost. It wasn't too many years before that that John Major was defeated, slaughtered was more like it. Sounds like I am pro labour but I am not, maybe at the start of Blair's government but only because I was sick of her who must be obeyed followed by the stuck up twit called Major. You can't trust any of them. Only way out is to have a big win on the lottery, become a tax exile and put your money abroad where our money grabbing government can't get their greedy little hands on it. Apologies to any rich folk out there if I am knocking your lovely little government but if you're rich then you probably don't give a WOTSIT.”
by Demonica666
Monday, April 23 2012, 10:36PM
“Nadine Dorries has described David Cameron and George Osborne as "two arrogant posh boys" with "no passion to want to understand the lives of others". She is a Conservative MP. Says it all. You can only surmise that 'call me Dave' and 'Call me Lap-dog' Clegg choked on their fruity Pimms when they heard this. Never mind though; they still have Danny 'Call me Shylock' Alexander for cuddles. What a picture that makes. I may vomit...”
by thesnooper
Monday, April 23 2012, 10:12PM
“@ Jack_Russell2
nothing is safe with this shower of a government we need rid of them”
by Jack_Russell2
Monday, April 23 2012, 9:59PM
“My Brother in Law is expecting to be made redundant from Coachman Caravans
One of his son's is expecting to be made redundant from Comet.
His other son has been made redundant from his job as Manager at Game on Princes Quay.
When the Barstewards start taking it out of my family....it starts to become personal.”
by thesnooper
Monday, April 23 2012, 8:12PM
“@ beverleybard
its not only in the caravan industry that jobs will be lost, it will also be in the companies that support the industry, timber suppliers, flooring some of the transport taking finished units to their destination”
by PURPLESPIDER
Monday, April 23 2012, 7:48PM
“Higher taxes to be paid to the Government and nothing coming back to show for this while the country crumbles into a huge mess so where is all this tax going???????????
One Question: Is this country being held to ransom and thats why rediculous tax ideas are being madeup??? Is it the EU?”
by hcfchcfc08
Monday, April 23 2012, 7:27PM
“Only 7,000 jobs to go.
Maggie would have gone ballistic with the wets over that trivial amount (in her eyes) and sent out a cast of her favourite hawks to increase the number significantly.
Call me Dave
Georgie Osborne
Calamity Clegg
Vince Cable
Danny Alexander
.......have all got a lot to learn but still they are trying but they're not really any good at anything.
Watch out you youngsters who resurrected the Tories, just like Voldemort, they'll hurt you before they're out and hurt you hard, you were warned.”
by smartguy1
Monday, April 23 2012, 5:19PM
“Kewstu, tell your kids they cannot go on holiday for the next 10 years because you are not going to put the bill on a credit card. Healthy bank balance, unhappy kids. Opposite under labour I agree but at what cost are the conservatives ruining this country. More job losses, less paid in tax, more paid out in unemployment benefit and tax credits. less spending. The country may just may be getting out of the mess that labour causes but we are all paying for it, some more than others. If you are rich or well off it won't matter to you which government are in but the conservatives seem to have a habit of looking after their own. On the current topic it was the Conservatives who introduced VAT, the conservatives who raised it from 15 to 17.5% and the conservatives who then raised it to 20%. The conservatives are not conservative over our tex hikes are they. If static caravans were left in 1973 then leave them alone. They are not a luxury for most. They are a cheap holiday for 1,000's and for sum a retirement home. They should have left it be. Cameron and Osbourne should be kicked out of government and replaced with people who are in touch with the people.”
by beverleybard
Monday, April 23 2012, 5:01PM
“Last week it was claimed it would cost 3000 jobs, now they are saying 7000. Proves that they are just plucking figures out of the air to support their case. Any advance on 7000 - watch this space!”
by thesnooper
Monday, April 23 2012, 4:40PM
“@ ianm
not really a subsidy is it, its reclaiming tax the same as other products
you mention tax going to nhs (vat) what about the loss of income tax and national health contributions paid from redundant workers and the increased payment of job seekers allowance also less profits for the company = less corporation tax and maybe the caravan manufacturers clam back the vat but what of the companys in the supply chain that dont, less products sold to the caravans companys = less vat charged by them the list goes on with prescriptions, housing benefits , school meals, dental treatments people losing their houses because they cant keep up the mortgage payments.
not everything is that black and white”